Silver is on Fire

The iShares Silver Trust (NYSE:SLV) has show exceptional strength since January 25, 2011 when it traded as low as $26.00 a share. The SLV has now rallied higher for three consecutive weeks without having more than a two day pullback. Today the SLV is making a new 52 week high. The daily chart is now starting to get a little extended and may need to take a breather soon by pausing or pulling back. Intra-day the SLV will have some short term resistance around the $31.25 and $31.50 levels.

The SPDR Gold Shares (NYSE:GLD) is also trading higher today by $1.00 to $135.09 a share. The GLD has shown strength since late January when it traded around the $128.00 area. However, the GLD is still trading below its early December all time high of $139.54 a share. Please note that the SLV is signaling better relative strength than the popular GLD at this time. The GLD will have intra-day resistance around the $135.50 level.

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.